Topic: Corn support is a function of an excessive

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CHICAGO, Nov. 5 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures settled mixed over the trading week which ended November 3 [url=]Maglia Lucas Biglia AC Milan[/url] , with soybean futures higher on technical buying and fund short covering.

The most active corn contract for December delivery fell 0.5 cents weekly, or 0.14 percent, to 3.4825 dollars per bushel. December wheat delivery went down 1.5 cents higher, or 0.35 percent, to 4.2575 dollars per bushel. November soybeans added 1.75 cents, or 0.2 percent, to 9.77 dollars per bushel.

December corn ended the week fractionally lower. CBOT corn futures have spent the last seven weeks alternating between stronger and weaker closes, and they have not traded outside a range of 3.43-3.59 dollars per bushel. This makes fundamental sense and analysts expect ongoing sideways price action into late December or early January [url=]Maglia Ignazio Abate AC Milan[/url] , when South American weather begins to have greater impact on yield.

Corn support is a function of an excessive fund short positions which is near record large. The world feed grain market is well supplied, but major exporter stocks are down slightly on the year.

Simply put, any major move in price requires either very good or very bad South American weather. Analyst caution against chasing breaks amid rising energy prices and the rapid development of La Nina.

Rallies are selling opportunities and will remain so indefinitely as U.S. acreage in 2018 will be higher. The only chance for a sustained CBOT corn rally rests with adverse South American weather.

Wheat futures ended a bit lower this week. World cash markets were relatively volatile, but Black Sea and Europe have maintained support at 192-193 dollars per metric ton versus 185 dollars on this week a year ago.

Wheat still lacks a demand story, perhaps even more than corn and beans. The Southern Hemisphere harvest lies just ahead, and yieldquality data there will be important over the next 4-6 weeks.

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